Farmers, orchardists and viticulturists in the Manuherikia catchment will finally have some assurance that a rebuild of Falls Dam is on the cards.

The Government announced today (Friday 20th) it is investing in the future resilience of Central Otago’s primary industries with a $2 million Regional Infrastructure Fund (RIF) loan to support pre‑construction work on the replacement dam near St Bathans.

Associate Regional Development Minister and Minister for Rural Communities Mark Patterson arrived at Two Farmers Farming in Lauder on Friday to make the announcement.

The likely cost of the dam, which will be rebuilt in front of the existing one, was last estimated at a cost of $100 million, and National has been a strong supporter of the water storage upgrade for many years.

The 90-year-old dam which supports around 8000ha of productive land in the catchment, is near the end of its life, and failing to deliver enough irrigation during dry years.

The $2 million loan will go towards a pre-construction programme to ensure the district can plan for a secure and sustainable source of water.

Manuherikia River Limited chair Jeff Grant explains the financing behind the Falls Dam rebuild to Minister for Rural Communities Mark Patterson and guests at Lauder on Friday. Image: The Central App

The loan recipient, Manuherikia River Limited (MRL), will use the funding to confirm regulatory requirements, consenting, engineering and detailed design, procurement, construction costs, and financing options. 

MRL will contribute $2 million in co-funding towards the pre‑construction programme, which is expected to take around two years to complete.

MRL chair Jeff Grant said the bulk of financing for the dam rebuild will be through private banking.

The only difficulty with the pre-construction phase will be the consenting process because of proposed changes to the RMA, he said.

Waitaki MP Miles Anderson said water supply is essential for the Central Otago community, and in the 90 years since the dam was built, the communities have seen major changes in land use and population growth.

“This is a major step towards certainty and confidence for the many users of water from the Manuherikia River, and for the future of the river itself.”

He said managing the Manuherikia water resource sustainably and efficiently is important for Central Otago from an ecological as well as economic perspective.

In recent years, water users have faced significant restrictions on irrigation, with periods of complete shut off limiting productivity during a drought season.

MP for Southland Joseph Mooney said he and Miles have been advocating for a solution to the water storage issue for a number of years.

“A reliable water supply for agriculture, rural communities, and potentially town supply, coupled with greater climate resilience and the ability to store winter and spring flows would be a major boost for Central Otago,” he said.

Potential benefits such as increased renewable energy generation, improved environmental flows, potential fish passage, and better flood protection all make a strong case for a replacement dam to secure and improve the area’s future, he said.

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